Natural Gas Weekly Technical Outlook
Nymex Natural Gas (NG)
The case for near term reversal is starting to build up in natural gas. Consider it just bounced off from medium term falling trendline, has bearish divergence condition seen in daily MACD. Nonetheless, break of 3.47 support is needed to confirm topping first. Otherwise, another rally would remain in favor to 4.0 psychological level. Sustained break of 3.47 will turn focus to 3.355. Break there should confirm near term reversal and should at least bring pull back to 2.575/3.277 support zone.
In the bigger picture, recent developments argued that medium term decline from 6.108 is completed at 1.902 already. It's bit early to confirm but bullish convergence condition in weekly MACD suggests that the down trend from 13.694 (2008 high) is possibly over too. Sustained break of the channel resistance (now at around 3.88) will set the stage for a test on 4.983 key resistance next. Meanwhile, break of 3.277 resistance turned support will argue that the rebound from 1.902 is over and the medium larger down trend is still in progress for a new low.
In the longer term picture, decisive break of 3.255 resistance was an important signal of long term bottoming reversal and should at least give a push to 4.983/6.108 resistance zone.
Nymex Natural Gas Continuous Contract 4 Hours Chart
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Nymex Natural Gas Continuous Contract Weekly Chart
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